Player Avatar TMFDeej (99.26) Submitted: 1/30/2011 9:09:44 PM : Outperform Start Price: $47.09 HSH Score: -56.64

Sara Lee [SLE]:Special Situation: Spin-OffMario Gabelli pick.Current Price: $17.17Target Price: $23 for meat + ? for coffeeThis food processing company is mainly involved in the meat and coffee segments. It sells its products under the Hillshire Farm, Ball Park, Jimmy Dean, Sara Lee, State Fair, Earth Grains, Colonial, Rainbo, Holsum, IronKids, Mother?s, Sunbeam, Sun-Maid, San Luis Sourdough, Heiner?s, Douwe Egberts, Senseo, Maison du Café, Marcilla, Merrild, Pickwick, Café Caboclo, Café Pilão, Bimbo, CroustiPate, Ortiz, and BonGateaux brand names.After much speculation that it would be sold (and the unfortunate corresponding surge in the price of its stock) the Company just announced last week that it is not for sale, but is splitting into two companies instead. This news immediately caused the stock to drop by nearly $2.50/share.Key Points- $500 million of cash from the sale of assets. It wasn't mentioned in the article, but I believe that SLE is now using this cash to pay a $3/share special dividend. - Gabelli values meat business at $23/share.- Coffee business is attractive.Deej

Member Avatar XMFConnor (97.84) Submitted: 7/7/2011 1:11:17 PM
Recs: 0

I'm surprised you didn't mention that ValueAct owns 27,404,523 shares

Seems like post-spin, it could be another takeover candidate in the ValueAct portfolio..

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